Complete Guide to Buying Property in Italy
Everything foreigners need to know about purchasing real estate in Italy, from legal requirements to the buying process.
1. Can Foreigners Buy Property in Italy?
Yes! Italy welcomes foreign property buyers with open arms. There are no restrictions on foreigners purchasing property in Italy, regardless of whether you're an EU citizen or from outside Europe.
The only requirement is obtaining an Italian tax code (Codice Fiscale), which is free and can be obtained from the Italian Revenue Agency (Agenzia delle Entrate) or through your local Italian consulate.
Good to know: Italy has reciprocal agreements with most countries, meaning citizens from the USA, UK, Australia, Canada, and most other nations can purchase property without any special permits.
2. The Property Buying Process
The Italian property buying process typically takes 2-3 months and involves these key steps:
Step 1: Property Search & Viewing
Work with a reputable local real estate agent who knows the area. At Hannibal Properties, we specialize in Umbria and Tuscany, helping buyers find their perfect Italian home.
Step 2: Proposta d'Acquisto (Purchase Proposal)
Once you find a property, you'll submit a formal purchase proposal. This typically includes a deposit of €5,000-€10,000, which is held by the agent and returned if the seller doesn't accept.
Step 3: Compromesso (Preliminary Contract)
After acceptance, both parties sign a preliminary contract. The buyer typically pays 10-20% of the purchase price as a deposit (caparra confirmatoria). This is a legally binding agreement.
Step 4: Rogito (Final Deed)
The final sale is completed before a notary (notaio), who verifies all documents, ensures the property is free of debts, and registers the sale. You pay the remaining balance and receive the keys!
3. Costs and Taxes
Budget approximately 10-15% on top of the purchase price for additional costs:
| Cost | Amount |
|---|---|
| Registration Tax (Primary Home) | 2% of cadastral value |
| Registration Tax (Second Home) | 9% of cadastral value |
| Notary Fees | 1-2.5% of purchase price |
| Agency Commission | 3-4% + VAT (usually split) |
| Legal Fees (optional) | €2,000-€4,000 |
Tax Tip: The cadastral value (valore catastale) is typically much lower than the market price, often 50-70% less. This significantly reduces your registration tax.
4. Legal Requirements
Essential documents you'll need:
- Codice Fiscale - Italian tax code (required)
- Valid passport - For identification
- Italian bank account - Recommended for payments
- Proof of funds - Bank statements or mortgage approval
The notary will also verify the property has:
- Clear title with no liens or mortgages
- Valid building permits and certificates
- Energy performance certificate (APE)
- Conformity of installations certificates
5. Financing Your Purchase
Foreign buyers have several financing options:
Italian Mortgages
Italian banks offer mortgages to non-residents, typically up to 60% of the property value (LTV). Interest rates are competitive, and terms range from 10-25 years.
Home Country Financing
Some buyers prefer to release equity from existing property or obtain financing in their home country, then transfer funds to Italy.
6. Expert Tips from Hannibal Properties
- Visit multiple times: See properties in different seasons. A summer paradise might be isolated in winter.
- Budget for renovations: Many Italian properties need updating. Get professional estimates before purchasing.
- Check internet connectivity: Essential if you plan to work remotely. Rural areas may have limited options.
- Understand the climate: Umbria and Tuscany have hot summers and cold winters. Air conditioning and heating are important considerations.
- Learn some Italian: While not essential, basic Italian will enrich your experience and help with local bureaucracy.
Ready to Find Your Italian Dream Home?
Our team at Hannibal Properties specializes in helping international buyers find the perfect property in Umbria and Tuscany.